R R Kabel Limited (RRKABEL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to RR Cable Ltd. Q2MH1F527 Earnings Conference Call hosted by MUFG. As a reminder, all participant lines will be in the listen-only board, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start and zero on your touch-tone phone. Please note that this conference is being recorded. Thank you.

Good afternoon, everyone, and a warm welcome to all the participants on the Q2 and H1F527 morning conference call of RR Kabul Ltd. Joining us today are Mr. Mahindra Kumar Sabra, Managing Director, Mr. Rajesh Kabra, Joint Managing Director, Mr. Rajesh J, Chief Operating Officer, Before we begin, I would like to give you a brief disclaimer. This call may contain forward-looking statements based on our current opinion and expectations as of today. These statements are not the guarantees of the future performance and are subject to risk and uncertainty that could cause actual outcomes through the material. With this, I would like to now hand over the call to Mr. Mahindra Kabraji for his opening remarks. Over to you, sir.

Good afternoon, everyone, and thank you for joining us for R.I. Kabraji's Quarter 2 FY27 Earning Calls. I have with me Mr. Rajesh Kabra, our Joint Planning Director, Mr. Rajesh Jain, our Chief Operating Officer, Let me begin with a very brief overview of the operating environment and our performance during the quarter. The broader economical environment continues to offer encouraging opportunities supported by India's focused on infrastructure development, power and electrification, housing and industrial infrastructure. These structural drivers continue to support the long-term growth prospects of the wired and cable industry. While global arts alternating and evolving market dynamics remain factors to watch, we believe the industry's fundamental remains strong, providing significant opportunity for organized players like R.R. Khabel. Against this backdrop, I am pleased to share that RL Kettle has delivered its highest-ever half-year revenue operating EBITDA and profit architects. I am also pleased to share that our board has declared an interim dividend of Rs. 6.50 for equity share. Further, the Board has approved an investment of Rs. 200 crores towards the land acquisition in Rajasthan to support our future expansion plan. This decision reflects our continued focus on rewarding shareholders while investing in the long-term growth of our business. I would also like to highlight an important development during this quarter. On 20th September, 2026, we entered into new business for agreement with UMK Bilks Limited, a wholly owned subsidiary of Ushamati Limited, who the proposed acquisition of UMK Bilks business, undertaking engage in manufacturing and selling optical fiber and related cables. The agreed consideration is approximately 77th course, subject to post-closing acceptance. The transaction remains subject to fulfillment of the condition precedent and has not recognized in our results as of September 2026. And before I conclude with Diwali just around the corner, I would like to extend my warm wishes to all of you and your families for a happy, healthy, and prosperous Diwali. With this, I would now invite Mr. Rajesh Shabra to share his perspective on our business performance and outlook. Over to you, Rajesh.

Thank you, Mahindraji, for the opening remarks. For H1 FY27, our consolidated revenue grew by 53% year-on-year. Operating EBITDA grew by 79% and PAT increased by 87%. We also delivered an improvement in EBITDA and PAT margins, supported by higher gross profits, operating leverage, and improved cost efficiencies. Our wires and cables business continued to lead the performance with revenue growth of approximately 53% in Q2 and 55% in the first half. We saw strong revenue growth across domestic and international markets with exports growing faster than domestic in Q2. 2. Higher export growth reflects our strong competitive positioning in international markets, while domestic business remains a key pillar of our growth strategy. Our focus is clear to deepen market penetration, strengthen execution capabilities, and capitalize on opportunities across infrastructure, construction, and industrial segments to drive sustainable, volume-led growth. For improvement in operating profitability is another encouraging aspect of our performance. For H1, wires and cables segment profit grew by around 78% with segment margin improving by approximately 124 basis points. This reflects disciplined commodity management, improved operating cost absorption, and operating leverage. Turning to FMEG, we continued to build business scale. The segment delivered revenue growth of approximately 42% in Q2 and 35% in H1. Growth was seen across key categories with appliances making a particularly strong contribution, including from new products. While FMEG segments reported a loss in the second quarter, the H1 segment loss margin narrowed to 2.2% from 4.5% in corresponding period last year. Our objective remains to achieve full year break-even at segment profit level in FY27. Building scale, improving cost absorption, and maintaining operating discipline remain central to this effort. As we enter the second half, our focus is on building upon strong performance delivered in H1. In wires and cables, we aim to sustain our growth momentum, further strengthen our international presence, and capitalize on emerging opportunities in the domestic market. In FMEG, our priority is to translate the growth scale of operations into improved profitability. Across both businesses, we remain committed to margin improvement of operational efficiencies and stronger cash generation to drive sustainable growth. On that note, I would also like to wish everyone a joyous and prosperous festive season ahead. With this, I will now hand over the call to Rajesh Red to take you through our financial and operational performance in greater detail. Over to you, Rajeshji. Thank you.

Thank you, Rajeshji, and good afternoon, everyone. Let me start with our consolidated performance for the second quarter. Revenue from operations stood at Rs. 3,284 crore, compared with Rs. 2,164 crore in Q2 of F526, representing year-on-year growth of 52%. Operating EBITDA stood at approximately 286 crores, compared with Rs. 176 crores last year, a growth of 63%. The EBITDA margins improved to 8.7% from 8.1% in the corresponding quarters, an expansion of approximately 60 basis points.

Profit before tax stood at approximately

242 crores, up 56% year-on-year. Profit after tax was approximately 181 crores, compared with 116 crores last year, a growth of 55%. Paid margin stood at 5.5% compared to this 5.4% a year ago. Coming to the first half performance, consolidated revenue increased to 6,452 crore from Rs. 4,222 crore in H1 F526, representing growth of 63%. Operating EBITDA grew by 79% of approximately 571 crore, compared with Rs. 319 crore last year. EBITDA margins expanded by around 130 basis points to 8.9% from 7.6%. Tropic after tax increased to approximately Rs. 386 crore compared with Rs. 206 crore last year, a growth of 87%. White margins improved to 6% from 4.9% in H1 F26. Now, coming to segment performance, let me first cover why I am stable. During Q2, the segment recorded revenue of approximately Rs. 3,010 crores compared with Rs. 1,971 crores in Q1 at 526, representing growth of 53%. Segment profit before tax and interest was approximately 282 crore, compared with Rs. 180 crore last year, a growth of 57%. The segment profit margins improved to 9.4% from 9.2%. For H1, wire and cable revenue stood at approximately 5890 crores, growing 55% year-on-year. Segment profits grew by 78% to around 558 crores, with segment margin expanding to 9.6% from 8.4% last year. Overall, wire and cable volumes grew by high single digit in Q2, and for H1, the volume row stands at low range. We remain focused on improving volumes, supported by discipline by gene, execution, and cost Within wire and cable, the overall segment profit margins, improvement was given by higher cost profits, discipline, commodity management, and operating usage. As we move ahead, maintaining this balance between growth and profitability will remain a priority. Turning to SMEG, revenues stood at approximately Rs.274 crores during Q2 compared with Rs.193 crores last year, a growth of 42%. For H1, the business recorded revenue of approximately Rs.562 crores, up 35% year on year. The growth was growth-based. During Q2, revenue growth was seen across categories, led by robust performance in appliances and contribution from new products. The segment reported a loss of approximately Rs. 12 crore in Q2, similar to the corresponding quarter last year. However, the segment growth margin has narrowed to 4.5% from 6.1% a year ago. For H1, the segment losses reduced to approximately Rs.3 per hour from approximately 19 per hour last year. The H1 loss margins narrowed to 2.2% from 4.5%, supported by growth in scale and improved absorption of operating costs. We continue to focus on the full-year objective of Dekuva at the segment profit levels. Our net working capital cycle improved to 46 days, days of September 26, from 49 days in March and 60 days in June. On the outlook, our priorities remained to extend the volume growth in wires and cables, maintain operating cost efficiency, manage working capital closely, and continue progressing towards profitability in SMG. We remain attentive to commodity price movements and their impact on both realisation and margin. Overall, we are encouraged by our actual performance, while recognising the importance of sustainable volume, scale conversion and discipline acquisition in the quarters ahead. With this, I would now request the moderator to open the floor for questions and answers. Thank you.

Thank you. We will now begin the question and ask the question. Anyone who wishes to ask a question may press star and 1 on your touch phone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use hand touch while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

The first question comes from the line of Aachal Lohade

with Doohama Institution Equities. Take a while.

Yeah, good afternoon, team. Thank you for the opportunity. Congratulations for the strong quarter yet again. Two questions. First, in terms of the volume growth, if you could split in terms of the wires and cables for the quarter, and also, if you could also give us some sense in terms of domestic volume growth and the export volume growth, Yes,

so our overall volume growth was like high. Sorry, can you come up again?

So, in terms of the volume growth, if you could split in cables and wires for 2K, and also in export and domestic fashion for 2K.

It seems we are getting disturbance from the background,

can you move to a place where it is, there is no disturbance in the background? Yes, please comment.

Got it.

Is there any, you know, weakness in the table's volume growth in your opinion? Even we are adding capacities, ideally the cables should have grown faster than wires, so issues could help us understand how do we see this?

No, you see, in quarter on quarter, you may see some variation, like depending, last quarter was monsoon season also, and there are various vectors. But fundamentally, nothing has been changed in growth drivers of this industry, and like we are quite positive, And

in terms of the growth expectation for the full year, how do we see for cable and wire segment, sir, in terms of volume or value?

Yes, we are expecting to

achieve the growth of around 14-15%.

So, which means that we are looking at a high peak kind of growth for second half. Is that a fair way of looking at it?

I have, I think, already given the specific number, around 14-16%.

Now, I'm just curious to, you know, kind of, around the expectations, but the second part, you know, with respect to the margins, if you could help us understand, how do we see the margins playing out for FI 27 and 28, if there is any change?

So, if you see our earlier guidance, where we have, like, guidance for improvement of approximately 100 basis funds in three years, which was, like, FY26, FY27, and FY28, and as per dot, like, we have targeted to achieve growth of 9.5% repeat margins in our wire and cable segment, where, like, even if you see on a half-day basis, we are at 9.6%. So, like, Our margin guidance will be 9.5% for this year and 10.5% for F528.

Got it. Great. I will fall back in the queue for follow-up.

Thank you so much. Hello, Harder, please go ahead. Next, please.

Yeah, we can move to the next. Thank you.

Next question comes from the line of Praveen Sahai with PL Capital. Please go ahead.

Thank you for opportunity and many congratulations for good set of numbers. Just on the volume side of, as you had mentioned, 14-15% of the full year, that means good volume growth in the S2. And we believe, and we have seen in the last year, on the second half, your volume growth were very strong, like Q3 were very good, 30% of the growth, and then after also a double digit of the growth in the Q4. So, even on the higher base, you are confident of delivering, you know, on the higher side of the mid-teens of the volume growth in the second half?

Yes, probably. So, if you see, normally, S2 is always, we have seen higher volumes year on year. I have seen over my experience of previous so many years. So, still, I think we will be able to achieve this our goal plan, whatever we have done, even based on this

And secondly, on the contribution of the export, because we have seen that export contribution over the last 4-5 years increase from 22-23% to now, 43-35%. So, where do you want to see this export contribution for your business going up in this couple of years? And also, secondly, in the export, is it still skewed towards a higher wire export or you are transitioning towards the cables?

So, if you see, our overall, always export was very big in our revenue pie and it was like always in the range of 25 to 30 percent and now we are moving towards approximately 35 percent kind of range also. At the same time, we have equal focus in our domestic wire and cable side also. At the same time, the growth in export is coming from cable side, where like earlier, we were having limited capacity, but now after installing new capacity, now we see enough growth and more growth opportunities also in cable side of the business, even in export also and as well as domestic.

Okay, so the mix towards cable is also improving in export. Yes. Next question, sir, next question related to the balance sheet. One on the working capital, creditors days you have seen a jump up in the first half. Can you, you know, give some indication why it is increased and will it continue to be at that level?

So, when you see the commodity prices are also an increasing trend, and to have efficient control of available capital, we have balanced more towards trade, payable, and trade. So, in that sense, our days have improved, like increased, but overall net working capital is, like, improving in a good trend, and now we are in the end of 40-50 days, which was, like, six months ago, it was around 49 days or 50 days. So, it will remain in the trajectory of 45 to 50 days on this.

Okay. Lastly, on the CAPEX, as you had given some indication last quarter call, that's around 600 to 650 on Crohn of a planned CAPEX for FY27. And as for the cash flow, you had already did the 280, and I believe 77 Crohn of a U.M. cable is also included in that. So, are you still, you know, going on in the same phase, like, of 650 YM crores for a full year of a CAPEX?

First, let me clarify this, UM table, amount is not included in this 281 crore, yeah, since payout is still done, and secondly, yeah, of course, like, whatever we have planned in the beginning of the year, in the range of, like, 550 to 600 crore, it will be there, as our CAPEX plan is on track, And we are executing on time.

And 200 crore of investment is over above this?

Yeah, that is different because, yeah, yeah, that is like new capex, what we are working on that, and this is 200 crore land acquisition is like first step towards our new capex now.

And that will outflow this year only?

Maybe a few parts in this year and some parts in the first half of that.

Thank you, sir, and all the best.

Thank you.

Thank you. Next question comes from the line of Sajid Kumar Singh with Motilal Oswal Financial Services Centre.

Thank you for the opportunity, sir. My first question is on UN cable business. So, what is the revenue potential at current capacity? What kind of margin can we expect? And is there any potential to improve the cost instruction and operating margin? Apart from that, also, if you highlight what kind of potential we see in next 3-4 years from this business.

So, as a first step, now we have acquired this business, and now we are working on detailed business plan. Of course, there are opportunities to grow that business, but it will be too early to have some detailed plan regarding next 2-4 years, But I think by next quarter, we will come with details now. And since this start was having very low capacitorization, so we will improve our capacitorization and improve revenue as immediate effect also.

So, can you look at FMEG business. So, we have again seen that the business has slipped into losses after breaking event in the previous quarter. So, though you said that you want to, in the

So, first of all, even at the beginning of this year, we calculated that on yearly basis, we will achieve the EBIT margin by Q1, though we were achieved with Q1 in Q1 itself, but Q2 is always, since we have some seasonal effects also, and Q2 is always, since we have some seasonal effects also, and Q2 is always, And

lastly, sir, with the previous question, there was a question on trade paywall. So, we have seen that trade acceptances have increased by around three times 1 by 2.6, and currently also it seems to be that it is increasing, which is also resulting So, can you give us the figure for Fy27? I think Fy26 was closer to 11 in the call.

So, now since we are working with LC utilization, so our utilization has increased. But, if you see the minority of our purchases in metal, now we are doing LC-based trade facility. So, you have seen a higher level of our table, but it is like normal course of business where, like, we are using efficiency of my available working capital.

Any number for trade acceptance is there?

Let me check and I'll come back to you. Just give me a minute. Yeah, it's like if I see overall amount of LC back there is 1,290 crores or something like that.

Okay, sir. Thanks a lot. Thank you.

Next question is from the line of Sundae Shetty with the HSBC Discord. Hello. Am I audible? Yes, sir. Hello. Yeah, yeah. Hello, sir.

Yeah, thank you. Good afternoon, sir. First of all, I want to ask on 100-bit contraction in gross margins. So, is it because of mix or something else there?

One, it is always, yeah, one is, of course, product mix is there, and secondly, since, like, we are working on very high raw metal base prices, so there will be some impact, but if we see overall profitability, as per our business plan, we are moving.

And also, sir, on the finance cost, we have seen some pickup there, so is it the new normal, or it will normalize by the end of year?

Yes, with such a high raw material prices, interest cost seems to be a normal way of business.

And also, sir, one more question.

So, on the competition, there has been a process of increased competition from September because of the intent of a new competition. If you can share your thoughts, because our business has more of WAG's components. So, how do you see the new competition intensity and how are you planning to mitigate the impact on it?

I always believe competition was always there, and it will remain always, because competition is part of business, though there may be like players may change, or their competition, intensity can be changed, but it is like part of business, and we have our own growth plans, and we will keep growing as per hour planning by

doing efficient utilization

of our plan, and as well as improving on our sales and marketing strategy.

Thank you, sir. That was it for myself.

Thank you. Next question comes from the line of Yash Jain with Ambithyabral Pishweta.

Thank you for the opportunity. Sir, a couple of questions first. When we talk about competition, increasing in the domestic market, what are we doing on the export side to offset some of the pain? Are we trying to enter any new geographies or getting any new approvals? Something on that line, if you could help with that.

So, again, also I said that we have equal focus on our growth, be it domestic market or export market or wire side or table side of the business. So, like, of course, we have, like, very high contribution from my export side of business also, but at the same time, we are equally focusing on our domestic market also. So, it is not that just because of competition, We'll have more focus. It is normal way where we are focusing on each and every opportunity of growing in either all product category also and all geography also. It is normal way where we'll keep focusing on our growth.

Right. Sir, any new approvals that you're trying to get or are in the process of obtaining any new approvals that open more further time for us in the export market?

So, this is, again, this is also normal process like where we We keep getting or adding new approvals of 3 to 4 international approvals each year and this is like right now also we are in process of getting few approvals and it is again looking to new market, new product category. It is a continuous process where you keep getting new additions in our approvals, quarter on quarter.

And one last question, sir. We have reduced volume variance for FY27 models. The visibility that we have right now for FY28, any color on that, from a volume growth perspective?

So, in such a volatile market, I would not like to have a very focused comment on this, but we'll keep focusing on our growth plan in terms of volumes.

Okay. Okay. Thank you, sir. Thank you.

Next question comes on the line of Matasha Jail with Flip Capital. Please go ahead.

Thank you, sir. The opportunity, sir, and congratulations on the good service numbers. My first question is on the existing plant, apparently some plant has shifted from one location to another. So, would you just throw some light, what is this, and really disrupt any production?

Yes, so, this is, no, no, this is like, in Burki, we are shifting our plan, but we have a plan in such a way that there will be no disturbance, but we increase our capacity in SMG also, but it is not disturbing any current production cycle or like that.

Got it. And for the 200 crore acquisition of plan, could you call out a little detail here as to what is the plan here, what kind of product will be manufactured of this plan?

As of now, we have not come up with detailed capex plan, and as earlier we said that after maybe one or two parts, we will come up with detailed capex plan. But, of course, it will be, like, towards our capacity in YN Cable Group's original plan only. So, it will enhance our capacities in that product range.

Got it. And, sir, one last question. Receivables have increased very sharply. Is there any stress in terms of payments from the channel or from the customer? Do you think there are liquidity constraints in the channel? Or is it just a normal course of business?

It is quite a normal course of business because if you see, my number of days have improved from 34 days to 32 days. So, though volumes are high because my business is also growing, at the same time, in terms of number of days, we are improving quarter on quarter.

Understood, sir. Thank you so much and all the well you ask.

Thank you. Thank you. Next question comes from the line of Patanjali Srinivasan with Sundaram Yuchampan.

Thank you for the opportunity.

I have a couple of questions.

Firstly, I see that all the peers in the industry are reporting kind of low volume. Given that there is so much capacity coming amongst all of you, how do you see the environment panning out with this kind of environment there?

No, we are quite confident to achieve our growth plans and since we are putting more effects towards enhancing our capacities and we see good growth in domestic as well as the export market. So, overall, it seems we will be able to achieve our growth plans in spite of whatever others are doing.

Any thing you can call out in particular, segments where things have seen some bit of slowdown, or there was some bit of reason why the growth is weaker, and you've also tapered down on your guidance. So, can you give us some color as to why you feel you'll be able to do a lower volume growth this year? What is causing this to happen?

See, on quarterly basis, there may be some situation, but fundamentally, I have not seen any indication where I see that growth will be tapered down or there will be slow growth. And since we are being better than industry, we will keep passing on that side of this.

No, sir, I'm just checking, because I think you've cut down your volume guidance by 2%, so I just wanted to know if there's any segment where you're seeing a slowdown or something like that, which is what is making you, like, trim your view on growth for the current year.

See, we have, like, corrected by just few basis points on this, so there is not huge change in scenario, and as we have seen, always, what is part of business, there, quarter on quarter, there are so many changes we have seen, which affects demand in new, like, in year term, but overall, I don't find any fundamental change in industry growth or our growth plans. So, I don't have any specific factor which is decreasing growth for this industry.

Thank you, sir. Thank you.

Thank you. Next question comes from the line of Vivid, with Asian Market Securities.

Hi, sir. Thank you for the opportunity and congratulations on the asset of numbers. My first question is with respect to the exports. So, just wanted to check which geographies and product categories are driving this increase, and secondly, in continuation of this, so earlier, remember, our export mix was leaning heavily towards the wire side, so just wanted your comment on that, you know, how are we seeing this over the next 12 to 18 months.

So now, since we started our journey from wire, so of course the wire was like more in our export, but now with NM's capacity in cable thread also, we are focusing more and expecting more increase in cable export. So this ratio is slightly changing in favor of cable now. And at the same time, since we have presence in so many continents and the VA has seen equal growth in all continents, specifically in Europe and Middle East, which are the biggest contributor in my export.

Can you please call out the exact mix for this quarter in the export?

Got it, sir. Secondly, on the FMEG side, we reported a loss of almost 12.5% this quarter, but in the earlier quarter, we did break-even, and the top line in the FMEG segment grew by almost 42%. So just wanted to check what exactly drove the sequential deterioration and, you know, which categories are profitable and, you know, how do you see, going forward, the overall segment performance?

So, if you see my overall revenue backup in SMG, like we are a fan-heavy company in SMG segment side, and this fan is like long season period for this Q2, so like the other segments where like light and apprentice contributed more, while we are expecting more profitability or So, we are expecting S2 at much higher levels with improvement in profitability and that is the reason when we say that on real basis we will achieve break T1 at EBIT level in spite of the cumulative losses of...

Great. As I just tried, I just wanted to squeeze one more, referring to Rajivji's today's morning TV interview. Just wanted to check what led us to revisit our growth, volume growth guidance for this particular year.

See, earlier, like, we were expecting around 15 to 18 percent, and we have just fine-tuned around 15 percent, and looking to the various factors, what we have seen, volatility also, in terms of, like, so many factors which impact. So, this is just a little bit fine to me. I will not say that we have done so much or a very big chance. Still, like, we would like to remain front-runner in this and we would like to go as fast as in the industry, even for H2 also.

Got it, sir. That's helpful.

Thank you and all the best.

Thank you.

Thank you. Next question comes from the line of Rahul Agarwal with Ichigai Assistive.

Hi, good afternoon to everyone on the call. Sir, few clarifications. Firstly, the capex of 600 crores. Does that include the Rajasthan land partial payment or it would exclude success?

No, no, it is apart from that. So, Rajasthan, that land is new capex land what we have now. We have started to execute. Right.

Right. So, we should budget around the 100 crores for second half for Rajasthan land capex? Yes, yes, you can. Okay, and does that include the UN table payout or that is also separate?

That will also be separate, part of.

Okay, and anything on relocation of Rolki have you spent or you will be spending?

That is like we are taking on lease, so there will be not huge capex there.

Okay, got it, sir. So, you know, just in terms of overall balance sheet and cash flow, what I am seeing is that, You know, our capex is going to be higher because, you know, there is another 180 crore of spending which will happen upwards of 600 crore, plus working capital will increase because of higher nominal prices, number of days is better. And then we are also increasing dividends, and we are also increasing increase in debt. Overall, sir, just to understand if, you know, from a free cash flow perspective, is the debt expected to further go up from here? We are already seeing about 500 crores on the balance sheet. Should we budget for another 200-250 crore to fund this JAPICS?

Yes, there will be some infusion rates, and see, first of all, if you see, even my debt leverage is quite favorable, it is like we are not over debt company, and quite efficiently we are working, it's like around 0.55%, which is quite healthy for any growing company. And in value terms, always you will see infusion rates, but it is part of, again, a normal business I will say

nothing abnormal we are doing, but it is part of our

original growth plan, and it is like capital I hope this will answer your question.

Right. And next year, capex, you should budget for 300 crores, right, is there a fair number?

Seems like, okay, there may be some plus minus, but as of now, it seems okay, 300 crores. Okay, got it.

Secondly, sir, on exports, could you just confirm the actual rupees crore revenue for this process? Is it about 1000 crores?

No, I will not give any exact results for this, but you can have your own estimate.

Yes sir, you said it was 32% of total sales. I am just trying to confirm that.

Yes, that is totally about 1000%. Yes, yes, approximately.

Okay. So, in terms of growth rate obviously is being less high versus domestic. Anything you would call out for next year like we should follow steady state basis, We should look at export growth a bit higher than domestic, right? That's how we should look at it.

No, here also, I would like to tell that sir, we have equal focus on domestic as well as export and always you can find some variation on water-on-water basis among product category also or among geography also. But at the same time, we will be like export and domestic may grow at same speed or similar speed from this. Okay.

And so lastly, on Optic Fiber, you said your capacity utilization will increase after you take over the asset. So just on the existing potential of the plant, right, how much should we budget in terms of overall top line which can get added from even cable? Next, the second half, should it be like, you know, on an 80 crore runway, should it be like 50-60 crore, what you should budget every quarter?

No, but first of all, like, it's still, like, we have yet to achieve the controls of that business, and after that, only we will start working on those revenues, so, I will not suggest to consider any bigger revenue or any bigger pie in our, my overall revenue, at least for this year, and for next year, of course, we will come with detailed guidelines, maybe next for us.

Okay, okay. Wonderful. I'll get back in the queue. Thank you so much, and all the best.

Thank you.

Next question comes from the line of Umang Mehta with Kota Securities, this way.

Hi, thanks for the opportunity. Just a clarification, the single digit volumes within cables and double digit in wires, this is at an overall level, right? Not in the domestic market. Is that the correct understanding?

Yes. Yes, sir.

And if that is the case, you mentioned that exports cables did better than wires. So, is it that in domestic market, cables actually declined in volume terms? Would that be a fair assessment?

Not declined. I will not say declined, but growth was less when I compare with wires growth.

Got it. And sir, in exports, this 80% got growth. Did this have anything episodic or do you think that the trend should continue for the rest of the year? I mean, on a full-year basis, how much growth do you all anticipate in exports?

So, like normally when we say, though due to change in product mix, the value growth may seem different quarter-on-quarter basis, even in domestic versus exports also. But overall, when we say that the exposed share will remain in the range of 30 to 35% for the remaining half-quarter.

Understood, understood. And just one last question. Other expenses, few by 35%, despite volume growth being slightly on the lower side versus last quarter. So, any specific reason behind this? Was there any one-off costs in this quarter?

No, no, nothing, like, one-off kind of thing, but it is, like, normal course of business where we have, like, mix of variable and fixed cost, and I cannot, I have not seen any abnormal or anything in this group, in feed in other expenses. It's normal course, sir.

I understood, sir. Sure. Thank you for my time. All the best.

Thank you.

Thank you. Next question comes from the line of Avindranath Nayak with Nirmalpang, please go ahead.

Thank you for the opportunity and good afternoon. Sir, my question regarding the CBM cable, you acquired this company at one-time sales, at the time when the optical fiber prices are at an all-time high. So, what is the objective there? Whether we will keep it 80,000 km per year, you know, capacity, ADCs, and also go into, like, your competitors like Polychab is doing the DTC work, or it is, we want to go into the, you know, beyond the normal telecom cable to manufacture other high-end cable like data center cables. Your thoughts, sir. Thank you.

So, first of all, this is very small, like, effect, what we have injured, but since we have a focused growth area in this business also, so we'll come up with, like, detailed business plan maybe after one quarter. So, as of now, I do not have a very detailed plan for this, but of course, we'll focus on growth in that segment also.

Okay, okay. Any CapEx plan? You don't have any plan right now?

Not IZOP plan. Not IZOP plan.

Oh. Okay, sir. Thank you very much.

Thank you. A reminder to all the participants, that is my best star and want to ask a question. Next question comes from the line of Tushar from the office, please go ahead.

Hello, I think most of my questions are answered. I just wanted to check on the increase in the long-term borrowings that we are seeing, I guess, around 200 or crores of increase from the F.26 level. Just wanted to understand, is it like for the land acquisition that we are going to do like Rajasthan or for other purposes?

No, this is for current capex, what we are executing, like, since we have capex of around 600 crores in this year on this, but it is towards that only, and it was planned in the beginning of the year.

Okay, then that is it.

Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of question and answer session. I now hand the conference over to Mr. Rajesh Jain for closing comments.

Yes. So, thank you everyone for taking the time to participate in today's call and for your continued interest in RR Kabul. We appreciate your questions and feedback and remain committed to building on our strong first-half performance. For any further feedback, please feel free to reach out to us. As we conclude, I would also like to wish everyone a wonderful Thastis G.M.I.S. Thank you once again, and we look forward to interacting with you soon.

Thank you. On behalf of RR Carbon Ltd, the conclude acceptance. Thank you, Bichani, as you may now discuss your links.